The Peoples Insurance Company of China (PICC) started offering the first insurance plans for severe air pollution (Fangxin Bao) in the country on March 17, 2014.

The insurance company will pay the insured a maximum of 1800 yuan in pollution subsidies when the air pollution index hit more than 300 for five consecutive days.

The PICC is offering plans to cover those between the ages of 10 and 50 years old at premiums ranging from 78 yuan to 138 yuan. Not exceeding 1800 yuan in total, the smog insurance plan provides policy holders with a 300-yuan payment if the air pollution index reaches more than 300 for five straight days and a 1500-yuan payment if the insured is hospitalized due to air pollution.